Currently Indian stock market is falling down and down. This is due to major financial crises of IL&FS (Infrastructure Leasing & Financial Services), higher crude oil prices and inflation. Investors lost Rs. 9.7 Lac crores in just 3 days.
The nature of stock market is to remain volatile and it is going to be volatile forever.
Think of year 2020, 2030, 2040 and beyond…
Record low of Rupee: A Falling rupee weighed heavily on investors. Local currency plunged into a fresh record low at 73.77 against the US dollar. Policy makers tried many things like verbal statements, monetary interventions and oil window.
Boiling Oil: Bent crude was trading about $86 per barrel in morning deals and WTI crude was above $76 barrel. Market has not reacted positively to steps taken by government for stability in rupee.
Foreign Capital Outflow: One of reason is foreign capital outflow from India. Investors remained concerned over foreign capital outflow as foreign investors portfolio offloaded shares worth Rs. 455 crore in October. They decreased their portfolio by around Rs. 1488 crore in September. Their net investment stood at Rs. 262.72 crore in August, as per data available.
According to data available , FIIs were net sellers of Rs. 2056 crore index futures and options segments. FIIs were net sellers of index futures to the tune of Rs. 699 crores and net sellers of index options worth Rs.1357 crore.
Investor confusion: Lots of investors confused about investing in this falling market. Few investors want to take benefit of it. One should invest for long term duration.
It is belief that Wealth creation is long term process. You cannot get rich quickly. Stay invested long termly and do not panic.